Chesapeake's (CHK) natural gas price per million cubic feet is slowly rising again after witnessing a steep decline, from $7.74 in 2008 to $3.16 in 2009, as a result of weak consumer demand during the economic downturn. As crude oil prices continue to rise and the oversupply of gas declines, we expect Chesapeake's natural gas price to increase to around $6.2 per million cubic feet by the end of our forecast period. Chesapeake competes with other oil and gas producers like Exxon (XOM), ConocoPhillips (COP), Anadarko, (APC) BP (BP) and Chevron (CVX).

Chesapeake's (CHK) natural gas price per million cubic feet is slowly rising again after witnessing a steep decline, from $7.74 in 2008 to $3.16 in 2009, as a result of weak consumer demand during the economic downturn. As crude oil prices continue to rise and the oversupply of gas declines, we expect Chesapeake's natural gas price to increase to around $6.2 per million cubic feet by the end of our forecast period. Chesapeake competes with other oil and gas producers like Exxon (XOM), ConocoPhillips (COP), Anadarko (APC), BP (BP) and Chevron (CVX).

Chesapeake Energy (CHK) announced it has agreed to sell approximately 487,000 net acres of leasehold and producing natural gas properties in the Fayetteville Shale play to BHP Billiton (BHP) for $4.75 billion in cash before certain deductions and standard closing adjustments. Chesapeake Energy overall option implied volatility of 34 is near its 26-week average, according to Track Data, suggesting non-directional price movement.

CBOE Volatility Index (VIX) was up 27% to 20.94.

Options Update is by stock specialist Paul Foster of theflyonthewall.com.

Here is a game changer. The natural gas market is about to become an export market. The U.S. has abundant natural gas and now two companies plan to take advantage of the opportunity, as reported in the Wall Street Journal (subscription required).

First we have privately owned Freeport LNG Development, working with Australian Macquarie Group (MQBKY), expecting to receive export permits. The company has an import terminal and it plans to add the equipment that will allow it to export as well.

Chesapeake Energy (CHK) Monday morning was upgraded to outperform from market perform at BMO Capital. The brokerage house cited valuation as the reason for the upgrade, stating that the shares are "attractively priced at three times next year's expected discretionary cash flow compared to a median multiple of around five times at the group's larger peers," according to MarketWatch.

BMO also feels CHK's use of joint ventures to raise cash and finance capital expenditure could lead to higher cash flow yields and returns on capital, MarketWatch reported. Along with the upgrade, the ratings house assigned a price target of $30 per share for CHK.

"If there was ever a stock we can hold for a few years, natural gas company Chesapeake Energy (NYSE: CHK) is it," says Ian Wyatt. Here's the latest from his Top Stock Insights.

"Chesapeake Energy is the largest independent natural gas company and most active driller of wells in the US. Its operating activities include the onshore exploration and production of natural gas.

"The Obama administration is keen on achieving energy independence for the US. Natural gas is a good option for energy, since it is inexpensive, clean and domestic. I believe the administration will continue to push natural gas as an alternative to oil, and create incentives for the industry.

The interest in using natural gas as an alternative to crude has helped natural gas-based companies appreciate in value. Chesapeake Energy (NYSE: CHK) has benefited from that interest, with a gain of more than 20% this year.

CHK is an interesting story in that during the craze in energy prices in 2008, the CEO of the company was forced to liquidate his entire position. That forced selling created an opportunity to buy the stock at an incredibly cheap price, even beyond the artificially low energy prices reached earlier this year.

You have to love OPEC. It's not uncommon for the barons of the giant cartel to voice their interest in seeing oil at such-and-such a price.

Recently, OPEC reiterated its desire to see oil prices at $80 per barrel. This, they claim, is the price needed to spur additional investment in crude projects. Apparently, anything less will result in oil sitting idle in the ground.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) Q1 results beat expectations and raised its guidance.
• Alpha Natural Resources Inc. (NYSE: ANR) shares surged after the it reported strong Q1 earnings.
• Archer Daniels Midland Co. (NYSE: ADM) just missed swinging to a loss due to to hefty investment losses.
• CBS Corp. (NYSE: CBS) surprised with a net loss in Q1 as revenue and cash flow declined.
• Chesapeake Energy Corp. (NYSE: CHK) shares fell after it reported disappointing results for the quarter.

Analyst Phil Weiss of Argus Research is none too impressed with the recent debt offering by Chesapeake Energy Corporation (NYSE: CHK). The natural gas concern on Wednesday sold $1 billion in six-year notes, with proceeds going toward outstanding indebtedness under CHK's credit facility. The offer was hiked from its initial planned value of $500 million.

Additionally, Chesapeake said it "anticipates reborrowing [under its revolving bank credit facility] from time to time to fund drilling and leasehold acquisition initiatives and for general corporate purposes." It seems the commodity firm is growing steadily more cavalier with its balance sheet -- CHK ended the fiscal year with just $1.75 billion in cash, compared to its December forecast of $2.5 billion.